A Growing Market

A GROWING MARKET

LOWER MANHATTAN’S YOUNG, EDUCATED AND AFFLUENT RESIDENTS

INTRODUCTION

Over the past twenty years, the residential population in Lower Manhattan has grown steadily, aided by new construction, office to residential conversion and a growing interest in the neighborhood’s many conveniences. Lower Manhattan has evolved into an increasingly 24-7 downtown, supported by the proliferation of residents and the diversification of retail. Many of the district’s new residents are affluent young professionals who are drawing retailers to fulfill their demand for more dining, entertainment and shopping. This report outlines the neighborhood’s noteworthy responsiveness to this evolving and growing residential population’s interest in expanding the variety of cuisine, grocery options and nightlife offered downtown. Exciting new openings cropping up across downtown point to a healthy retail environment even as the commercial real estate market recalibrates in the wake of Covid-19.

In 2022, the Downtown Alliance partnered with Audience Research & Analysis to survey residents in Lower Manhattan to better understand their retail desires, preferences and spending habits. Through an online survey and series of focus groups we identified areas of demand and ways in which the Covid-19 pandemic has affected consumer practices. The results, presented below, show that Lower Manhattan’s 64,000 residents are active supporters of the neighborhood’s retailers and restaurants and are actively interested in broader options in a few categories: culinary diversity, grocery shopping, one-stop retail shopping, nightlife and entertainment. Since this survey was completed, a number of these desires have been met or projects promising to meet this new demand have been announced. Last year 150 new businesses opened in Lower Manhattan as entrepreneurs have responded to the pent up demand of neighborhood residents.

Exciting new destinations for dining, including the Tin Building, have added to the rich variety of cuisine types to Lower Manhattan. In January of 2023, a Whole Foods opened at the base of newly converted residential property, One Wall Street. The same property will add a luxury French department store, Printemps, in 2024. Arts and entertainment options downtown will expand dramatically with the planned opening of the Ronald O. Perelman Performing Arts Center at the World Trade Center

In addition to the newly opened immersive visual arts experiences like Halls de Lumieres. Century 21, which closed in 2020, is reopening its Lower Manhattan flagship store in the spring of 2023. All of these openings respond directly to the residents’ demands identified by ARA through their survey.

Lower Manhattan is continuing to grow into a residential neighborhood of choice. There are currently nearly 5,700 new units in 22 buildings either under construction or planned. Projected growth as a result of rezonings and planned infrastructure projects in surrounding neighborhoods will also further the neighborhood’s appeal for retailers. This growing and affluent residential population represents a unique opportunity for entrepreneurs.

WHO LIVES DOWNTOWN?

A YOUNG, EDUCATED AND AFFLUENT POPULATION

66,000 Residents

33,650 Households

35 Median Age

21% Households With Children

Average Household Size: 2.1

85% Bachelor’s Degree or Higher

Including 40% that have a graduate or professional degree

62% of Lower Manhattan’s population is between 25-54, nearly double the share for both Manhattan (37%) and New York City (31%)

DINING PREFERENCES AMONG LOCAL RESIDENTS

Lower Manhattan residents dine out regularly and are generally happy with the neighborhood’s options, but they crave more full service, casual options with affordable prices and varied cuisine offerings. Most residents expressed an interest in more affordable dining options, but consumers in the community placed greater emphasis on diversity of cuisine. Lower Manhattan diners seek a greater variety of cuisine types and are interested in seeing more approachable “neighborhood” restaurants.

35-54 Age group most likely to eat out or order takeout 3+ times per week

33% Extremely or very satisfied with Lower Manhattan restaurants

50% Regularly visit other downtown neighborhoods like SoHo, Tribeca, and the West Village to eat out

2 Days most residents visit or order from neighborhood restaurants

MOST DESIRED DINING OPTIONS AMONG LOCAL RESIDENTS

48% Desire full-service, casual (non-chain restaurants)

28% Desire more outdoor dining options

47% Desire more variety in cuisine

16% Desire more familyfriendly dining options

39% Desire restaurants with later hours

40% Desire more affordable prices

GROCERY SHOPPING PREFERENCES AMONG LOCAL RESIDENTS

Lower Manhattan residents prioritize convenience and accessibility when shopping for groceries and everyday staples. Residents desire “one-stop” grocery shopping experiences that offer affordability, value, and variety. In addition to the recently opened Whole Foods at One Wall Street, residents are interested in high quality affordable grocery stores (like Trader Joe’s) and expanded farmers markets.

Most Desired Grocery Shopping Options

40% Now grocery shop online all or most of the time

33% Rarely or never shop online for groceries

RETAIL SHOPPING PREFERENCES AMONG LOCAL RESIDENTS

Lower Manhattan residents value the unique shopping experiences offered by the neighborhood’s major retail destinations like Westfield, Brookfield Place and the Seaport. Residents enjoy the sense that these destination hubs differentiate the neighborhood from other parts of the city. Still, Lower Manhattan residents desire “one-stop,” mid-market department store options in addition to the neighborhood’s many upmarket and boutique apparel offerings.

50% Shop online instead of at local stores

Residents who would like to shop more at local stores feel limited by the retail offerings available in the neighborhood.

21% Households With Children

These residents desire expanded home goods offerings and stores offering children’s clothing, toys, and family recreational activities.

NIGHTLIFE PREFERENCES AMONG LOCAL RESIDENTS

Lower Manhattan residents tend to visit nightlife venues in nearby downtown areas like TriBeCa, the West Village and SoHo more than those within the neighborhood. Most residents who go out want more nightlife options within Lower Manhattan. The most desired types of entertainment were performing arts, live music/DJs and comedy clubs. Performing arts had the greatest appeal to older age groups (cited by more than 60% of the 55+ cohort), while younger groups wanted more live music/DJs (63% of 18-24 year olds responded with this preference). On average, residents who visit nightlife venues go out about twice a month, although nearly a third go out rarely if ever — within or outside of the neighborhood.

Most Desired Nightlife Options

49% Desire more performing arts options

46% Desire more live music/DJ events

LOWER MANHATTAN’S RESPONSE TO PENT UP DEMAND

Since this survey was conducted, new retailers, restaurants and entertainment options have sprung up around Lower Manhattan. In 2022 the neighborhood saw over 150 new openings, filling many vacancies left by pandemic closures and helping to meet the demand described by our respondents. Lower Manhattan is home to new destinations for high-quality grocery, fine dining, and the arts, with further anticipated openings feeding a desire for elevated entertainment, department store retail, family-friendly activities and more.

Whole Foods opened a long-awaited, 42,000 sq. ft. new location at One Wall Street, fulfilling an enduring desire among neighborhood residents for one-stop, high quality grocery shopping in Lower Manhattan.

SPIN, an upscale ping-pong social club featuring multiple ping-pong tables, a full bar, and private rooms, will open later this year in the 5,600 sq. ft. former Bobby Van’s space at 25 Broad Street, joining Lower Manhattan’s growing roster of nightlife and entertainment options. 9

LOWER MANHATTAN’S EVOLVING DINING SCENE: NOTABLE RECENT OPENINGS

The Tin Building by Jean-Georges includes two gourmet grocery stores, 12 restaurants and four bars offering a variety of cuisines and service types ranging from full-service to fast-casual dining (96 South Street).

Casa TuLuM, a stylish Mexican restaurant helmed by chef Rodrigo Abrajan focuses on seafood dishes from across Mexico with an emphasis on the cuisine of Tulum and the Yucatan Peninsula (229 Front Street).

Artesano, a northern Peruvian restaurant helmed by chef Rodrigo Fernandini opened to rave reviews in October (90 Chambers Street).

Farida highlights traditional dishes from across Central Asia with a focus on the cuisine of Uzbekistan (32 Cedar Street).

LOWER MANHATTAN’S EVOLVING ARTS & ENTERTAINMENT OFFERINGS

Hall des Lumières, an immersive digital arts center, opened in the landmarked former Emigrant Industrial Savings Bank hall in 2022. The 28,000 sq. ft. space is filled with historic details that add to the experience of seeing classic works by great masters in a new, immersive way.

The long awaited Ronald O. Perelman Performing Arts Center at the World Trade Center is slated to open to the public later in 2023. The 110,000 sq. ft. cultural center will be a new home for emergent and established artists in theater, dance, music, opera, film and media from NYC and around the world.

MAJOR UPCOMING NEW OPENINGS

Luxury French department store Printemps will open its first US location at One Wall Street in spring 2024. The store will span 54,365 sq. ft. over two levels. This space will include the landmarked Red Room, one of only 50 interior landmarks in New York City.

Court 16, a family-friendly, membership based tennis and pickleball facility with programming for adults and children, is expected to open in summer 2023 at 28 Liberty Street.

Iconic off-price department store Century 21 will reopen its flagship department store at 22 Cortlandt Street in Spring 2023 in partnership with Legends Hospitality.

Popular Brooklyn-based craft beer brand Sixpoint Brewery is set to open a 7,500 square foot taproom, including a 2,500 sq. ft. outdoor beer garden, at 200 Liberty Street in Brookfield Place late 2023.